site.btaKBC Group Revises Up Bulgaria’s 2026 Growth Forecast

KBC Group expects Bulgaria’s economy to grow slightly faster in 2026 than previously projected, the Belgian financial group said Wednesday. The group’s assessment of Central and Eastern European economies noted that Bulgaria’s economic expansion remains stable and is driven mainly by domestic demand, supported by momentum from the anticipated adoption of the euro.

KBC analysts forecasted that Bulgaria’s GDP will increase by 2.7% in 2026, up from an earlier estimate of 2.6%. For the current year, the group expects GDP growth of 3%.

The report anticipated that inflation will remain elevated, with average consumer price growth projected at around 3.4% in 2026 compared to 3.5% in 2025.

Fiscal policy is expected to remain expansionary in 2026, largely due to indexation practices that increase expenditure. Experts noted that Sofia is under pressure to tighten fiscal policy to mitigate overheating risks.

KBC Group also expects Bulgaria’s budget deficit to rise to 4.2% of GDP in 2026, compared with 3% in 2025.